10 Eye-opening Employee Retention Statistics You Should Take Note Of
New companies and new opportunities are coming up every day. With so much to choose from, employees don’t think twice before switching their job if their current one doesn’t suit them.
To keep up with the changing times and changing needs, employers need to be mindful of how they manage their company culture.
1) 69% of employees who undergo effective onboarding are more likely to stay with an employer for at least 3 years, and 58% are more likely to stay on for more than 3 years. (source- O.C.Tanner)
The onboarding program is the first official interaction a new hire has with the company. So setting a good first impression can go a long way in building employee-management relationships.
An effective onboarding program is a lot more than letting your employees know about the company benefits, its history and culture. Modern orientation and onboarding processes focus on outlining the goals and objectives, expectations and skills an employee must possess. Setting the objectives early on enables employees to get clarity on what is expected and how they can achieve the set goals.
2) London based Thrivemap surveyed 1000 full-time employees and found that 48% of employees left their job because it didn’t meet their expectations. Among Gen-Z employees (aged 18-24), the percentage shot up to a whopping 73%. (source- hrdive.com)
When the above-mentioned survey’s respondents were asked what differed from their expectations, the following reasons came up-
Job responsibilities (59%)
Working environment (42%)
Work hours, shift patterns (35%)
Salary and benefits (29%)
It’s unfortunate when your employees leave your organisation because you couldn’t offer what you promised while hiring them. As the research suggests, this disconnect is causing employees to leave their jobs.
With career options like the gig economy, freelancing and remote working gaining popularity, employees can jump ship anytime they want now. To retain, businesses must focus on their recruitment processes and make sure they portray their company honestly.
3) 79% of employees wouldn’t accept a job at a company with a higher salary unless the company failed to take actions against employees involved in unethical behaviour. (source- The Manifest)
Last year saw a rise in cases of sexual harassment faced by women in their workplaces (corporates, media, entertainment). It gave rise to the #Metoo movement where women started sharing their stories. In India, there was a 54% rise in reports of sexual harassment cases.
The above survey by Manifest shows that employees are becoming more mindful of their colleagues and their working environments. Companies, too, must strive towards making workplaces safe and actually practice their work ethics. They need to be unbiased towards their treatment towards employees (that goes for both the accused and the victim).
4) Highly engaged employees are 87% less likely to leave their companies than their less engaged counterparts. (source- Corporate Leadership Council)
Human resource management can organise activities to revive engagement among their unmotivated and disengaged employees. These activities can range from collecting regular feedback, recognising employees for their efforts, flexible work timings, etc.
5) Employees whose managers consistently acknowledge them for good work are 5x more likely to stay at the company. (source - Qualtrics)
Employee recognition is fundamental to an organisation’s retention efforts.
Imagine you have been assigned a project that you’ve been working on for the last 1 month. You finish it successfully and the client loves it. But your boss doesn’t even acknowledge your efforts or recognise the good work you’ve done. How does that make you feel?
Disappointed and dejected right? Now shift this to you being the above-mentioned kind of boss and the praise you didn’t give to a deserving employee. Do you still think your employee will want to work under such a manager? I wouldn’t.
Acknowledging and appreciating someone doesn’t mean you’re picking favourites or being biased. It’s just showing your employees that you take notice of their efforts and their hard work is contributing to the company’s bottom line. Such employees, who are recognised will always be motivated to work hard and achieve goals. This is so because they will remember the feeling of satisfaction they felt when the management appreciated them.
6) Employees whose managers consistently help them manage their workload are 8x more likely to stay, though only approximately half of managers effectively accomplish it. (source - Qualtrics)
Overworking your employees isn’t going to bring in more revenue for your organisation. In fact, it’s going to do the exact opposite.
Due to increased workload, employees will start getting tired and this tiredness is going to reflect in their work. They will suffer from mental exhaustion, lack of sleep which will all lead to various physical and psychological problems like stress, anxiety, depression, etc. They will start taking more leaves and start staying out of the office more. The lack of work-life balance over a long period of time will eventually drive them to leave the organisation.
While it might seem logical to load one person who is more skilled and efficient than others with added work, it’s not going to work out for you in the long run. This skilled employee will eventually become fatigued and unable to carry more on his plate than he can. To ensure this doesn’t happen, employers need to be fair in their distribution and delegation of work.
7) The average employee exit costs 33% of their annual salary. (source- Employee Benefits News)
Hiring an employee takes time, resources and money. Similarly, when an employee leaves, it costs the employer 33% of that employee’s salary to get him/her replaced.
The same report also highlights the indirect costs of employee turnover. These indirect costs are in the form of productivity loss. When an employee leaves, she takes with herself her knowledge, skills and experience. This causes a gap between the work that needs to be done and the lack of available skills to do that work. Even after a new replacement is hired, it takes time and training for that employee to fully contribute.
The only way to stop this from happening is by conducting regular 1:1 meetings with your employees to understand their needs and concerns.
8) 95% of human resource leaders admit employee burnout is sabotaging workforce retention. (source- Kronos Incorporated and Future Workplace)
We repeatedly say that employees are an organisation’s biggest asset. They drive your business towards loyal customers and generate revenue for your business. Therefore, as hr leaders, their well-being should be your top priority.
Too much overtime and overwork are sapping the life out of your employees. Moreover, with the new generation being so adamant about work-life balance, organisations must bring new changes to their organisation.
Mollie Lombardi, CEO of Aptitude Research has said, “While not all burnout can be eliminated, much of it can be avoided using critical strategies that balance consistency and personalization of schedules and workload; leverage managers as models for how their team can achieve work/life balance; and implement tools and technology that proactively manage burnout or otherwise support these efforts.”
9) 8 in 10 employees would seek a new job after 1 bad day. (source- Addison Group)
Retaining top talent is becoming difficult and very competitive. In fact, the same survey also found that 81% of job seekers cited dissatisfaction with the work environment as the major reason they started to look elsewhere for work.
More than half of the respondents say they feel underpaid. Some are not satisfied with the company’s benefits policy. A lot of them said another cause of dissatisfaction was the limited career growth.
Some other reasons for dissatisfaction which managers need to look out for are hostile work culture, unsupportive boss, lack of meaningful work, work and life balance.
Especially for millennial and Gen Z employees, if they don’t get the job satisfaction from their work, there’s no way they’re going to be associated with that field/company.
10) 70% of staff members would be at least somewhat likely to leave their current organizations and take a job with one that is known for investing in employee development and learning. (source- The Harris Poll)
In the survey, career development was ranked the 2nd most important need after compensation that made employees want to stay.
Employee development is crucial to managing an organisation’s turnover rate. In order to excel and become experts in a field, employees need to gain knowledge and experience. That is only possible when they advance in their career, work with new teams and learn new skills.
On the other hand, if employees feel their growth and exposure has become stagnant in a company, they’ll definitely start looking for other opportunities.
All of these statistics point towards the transition that workplaces are going through and what future businesses need to do to retain their top talent.